Conversation around innovation and regulation took centre stage on Saturday, February 28, at the Zikoko Citizen Townhall themed, “Who shapes the Nigerian life?”
Held at Four Points by Sheraton Lagos, the event brought together founders, investors, and policy experts to unpack a pressing question: how do you build innovative businesses in an environment where the rules can change overnight?
When Innovation Feels Like Disruption
Speaking during a panel session titled “Innovation under pressure: How politics shapes what can be built in Nigeria,” Oswald Osaretin Guobadia, Managing Partner at DigitA, pushed back on the idea that innovation must always move faster than regulation.
According to him, the tension often comes from how innovation is perceived by those in power.
“The government doesn’t understand disruption,” he said. “What they see is displacement.”
In his view, when regulators don’t fully understand new technology, they tend to respond defensively sometimes with bans or restrictive policies. The result is uncertainty for businesses trying to build long-term solutions.
The Foundations That Sparked a Tech Boom
Amaka Okechukwu Opara, Founding Partner at Weav Capital, highlighted that regulation hasn’t always been a barrier. In fact, some government decisions helped lay the foundation for Nigeria’s tech growth.
She pointed to reforms around right of way and fibre optic infrastructure in Lagos moves that strengthened connectivity and helped transform Yaba into a thriving innovation hub.
But she was quick to note that today’s founders are operating in far tougher conditions.
Exchange rate volatility, she said, has had real consequences. “Businesses are struggling and still building,” she explained, describing Nigeria as one of the toughest environments in the world to run a business right now.
The Human Cost of Policy Shifts
Douglas Kendyson, founder and CEO of Selar, added another layer to the discussion.
He acknowledged that regulation is meant to protect citizens not stifle businesses. But he recalled the 2021 cryptocurrency ban as a moment when that protection felt more like a threat to innovation and livelihoods.
For many founders, sudden policy changes are not abstract issues. They directly affect revenue, investor confidence, and even mental health.
Engagement, Not Avoidance
So how can this cycle be broken?
Guobadia argued that founders need to be more intentional about engaging policymakers. The disconnect, he suggested, is often a communication gap between innovators and regulators.
“It’s important that those of us creating amazing ideas find a way to engage the government and policymakers on what we’re trying to achieve,” he said.
Opara agreed, framing regulatory engagement as a core responsibility of founders not an optional extra.
In her words, ignoring regulators is risky. For example, she noted that fintech founders should be regularly engaging with the Central Bank of Nigeria, not waiting until there’s a problem.
Her message was clear: in Nigeria’s business climate, survival isn’t just about innovation. It’s also about participation.